NPM 047-2014

Requesting Entity: Meycauayan Water District (MWD)

Issues Concern: Single Largest Completed Contract (SLCC)



Is it legal for the Bids and Awards Committee (BAC) to award a contract to a bidder without a similar contract valued at least fifty percent (50%) of the Approved Budget for the Contract (ABC)?

At the outset, the Government Procurement Policy Board (GPPB) and its Technical Support Office (TSO) has no jurisdiction to rule over actual controversies with regard to the conduct of the bidding since it has no quasi-judicial functions under the law. Hence, this office has consistently refrained from passing upon decisions of the BAC pertaining to the determination of compliance with the bidding documents for a particular project or in this case, the compliance of the subject contract with the SLCC requirement.

As a rule, the prospective bidder must have an experience of having completed at least one (1) similar contract that must be at least fifty percent (50%) of the ABC to be bid. However, in case a contractor has no similar experience on the contract to be bid, and is registered with the Philippine Contractors Accreditation Board under Small A or Small B category, it may be allowed to bid on contracts costing not more than fifty percent (50%) of its registration's Allowable Range of Contract Cost, as provided in Section of the revised Implementing Rules and Regulations of Republic Act No. 9184.